Too many homeowners are still underwater on their mortgages for home values in half of the nation’s 100 largest metro areas to reach their pre-recession peak levels within the next three-plus years, according to the second quarter Zillow Real Estate Market Reports
Nationally, home values remain 11.3 percent below their 2007 peak. Looking ahead, U.S. home values are expected to rise another 4.2 percent through the second quarter of 2015, according to the Zillow Home Value Forecast will take 2.7 years for national home values to re-achieve their pre-recession levels, assuming a steady rate of appreciation at the forecasted level.
U.S. home values climbed 6.3 percent year-over-year in the second quarter to a Zillow Home Value Index (ZHVI)iii of $174,200, the slowest annual pace of appreciation recorded so far this year and a sign that the market is returning to more normal levels. In a more normal market, home values appreciate at roughly 3 percent per year. Home values nationwide were up 1 percent compared to the first quarter and 0.5 percent from May.
Homes.com, which tracks 300 markets in its monthly Rebound Report, says that through April, a total of 105 markets or 35% percent of all markets it tracks have achieved full pricing recovery and another 178 markets, or 59% of the total, have rebounded 50 percent from their trough index number.
However, Zillow said that in 50 of the nation’s 100 largest metro markets, it will take three years or more for home values to reach prior peaks. Notable large metros where full recovery in home values will take longer than a decade include Minneapolis (14.5 years), Kansas City (12.5 years) and Chicago (11.7 years).
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http://www.realestateeconomywatch.com/2014/07/stubborn-negative-equity-delays-national-price-rebound/
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